UNICTRAL MODEL LAW

ON INTERNATIONAL
ARBITRATION
GROUP 2
ALBAY|AZADA CHUA|DEL
CASTILLO|LEYNES|MARCO|MILLERA|
RAMOS|SANTIAGO|SARMIENTO
BACKGROUND
TO THE
MODEL LAW
LEYNES, ALDRIN PHILIP
WHY THE NEED FOR MODEL LAW

INADEQUACY OF DOMESTIC LAWS

- Disparities in individual provisions,
solutions, development and refinement
- Outdated local laws
- Do not address all relevant issues
- Local concepts are most of the time not
applicable to international cases
 - Unreliability of one-off arbitration
agreement
- Unexpected and undesired
restrictions in national laws may
hinder party autonomy
- Unwanted non-mandatory
provisions may result to undesired
requirements
 DISPARITY BETWEEN NATIONAL LAWS
- National Laws on arbitral procedure
differ widely
- Foreign and Unfamiliar provisions and
procedures
- Possibility that a chosen law is
expensive, impractical or impossible to obtain
- Problem as to place of arbitration is a
common issue
- Enhanced the smooth functioning of the
Arbitral Proceedings
 GENERAL
PROVISIONS
AZADA CHUA, JAN CARLO
 This law applies to International Commercial
Arbitration, subject to any agreement in force
between this state and any other state or states

The provisions of this law, except articles 8,9,35

and 36, apply only if the place of arbitration is
in the territory of this state.
 An Arbitration Is International IF:

The parties to an arbitration agreement

have, at the time of the conclusion of
that agreement, their places of business
in different states
 One of the following places is situated outside
the state in which the parties have their place
of business

The place of arbitration if determined in, or

pursuant to, the arbitration agreement
Any place where a substantial part of the
obligations of the commercial relationships is
to be performed or the place with which the
subject-matter of the dispute is most closely
connected
 The parties have expressly agreed that
the subject-matter of the arbitration
agreement relates to more than one
country.
 DEFINITIONS
Arbitration
Any arbitration whether or nit administered by a
permanent arbitral institution

Arbitral Tribunal
a sole arbitrator or a panel of arbitrators

Court
a body or organ of the judicial system of a state
 RULES ON RECEIPT OF WRITTEN
COMMUNICATIONS

Unless otherwise agreed by the parties:

any written communication is deemed to have been
received if it is delivered to the addressee personally
or if it is delivered at his place of business, habitual
residence or mailing address; if none of these can be
found after making a reasonable inquiry, a written
communication is deemed to have been received if
it is sent to the addressee's last-known place of
business, habitual residence or mailing address by
registered letter or any other means which provides a
record of the attempt to deliver it;
the communication is deemed to have been
received on the day it is so delivered.
 EXTENT OF COURT INTERVENTION

In matters governed by this law, no court shall

intervene except where so provided in this law.
CHAPTER II: ARBITRATION
AGREEEMENT
MARCO, MA. TERRESA M.
 WHAT IS ARBITRATION
AGREEMENT?

Arbitration agreement is an agreement by the

parties to submit to arbitration all or certain
disputes which have arisen or which may arise
between them in respect of a defined legal
relationship, whether contractual or not. (Article
7, UNCITRAL Model Law)
An arbitration agreement may be in the form of
arbitration clause in a contract or
form of a separate agreement.
 The arbitration agreement shall be in writing.
 The reference in a contract to a document
containing an arbitration clause constitutes an
arbitration agreement provided that:

1. It must be in writing; and

2. The reference is such as to make that clause
part of the contract.
 REFER PARTIES TO ARBITRATION

Unless
Agreeement is null and void;
Inoperative; or
Incapable of being performed
 Request of a party for an interim measure of
protection from a court, before or during
arbitral proceedings and for a court to grant
such is NOT INCOMPATIBLE with an arbitration
agreement.
 COMPOSITION OF
ARBITRAL TRIBUNAL
UNCITRAL MODEL LAW ON
INTERNATIONAL COMMERCIAL
ARBITRATION

SANTIAGO, APRIL
COMPOSITION OF ARBITRAL TRIBUNALS

PART I: COMPOSTION & APPOINTMENT

PART I: COMPOSITION & APPOINTMENT

APPOINTMENT OF
ARBITRATORS
FOLLOWS the PRINCIPLES of Self-Determination and
Party Autonomy.
Usually 3 ARBITRATORS but can be only 1 (Sole
Arbitrator)
Criteria usually decided upon the arbitration
agreement
 PART I: composition & Appointment

Appointment
IN DEFAULT OF
of
AGREEMENT (SOLE DE
(3
PLAI arbitrators
ARBIT
ARBITRATORS) ARBITRA
PLAI FE
NTIF OTH
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NTIF RATO TOR)REQUESTER
F R 1 ARBIT F BY BOTHAN
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FE ARBIT SOLE
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PART I: COMPOSITION & APPOINTMENT

APPOINTMENT OF
ARBITRATORS
UNLESS other means for securing appoint is agreed
upon
under appointment procedure agreed upon by
parties;
A. A party fails to act as required under such procedure
B. The parties, or two arbitrators, are unable to reach an
agreement expected of them under such procedure,
or
C. A third party, including an institution, fail to perform any
function entrusted to it.
COMPOSITION OF ARBITRAL TRIBUNAL

PART II: CHALLENGE & FAILURE TO ACT

PART II: CHALLENGE

GROUNDS & RULES

Gives justifiable doubts as to his:

Impartiality or Independence, or
Possession of Qualifications.
A party who APPOINTED an arbitrator shall not be
allowed to challenge that arbitrator; concept of
estoppel.
EXCEPTION: where the act of appointing was made
WITHOUT KNOWLEDGE, actual or constructive, of the
actual facts.
 Part II: cHallenge
WRITT
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 JURISDICTION OF
ARBITRAL TRIBUNAL
CHAPTER IV OF UNCITRAL MODEL LAW ON
INTERNATIONAL COMMERCIAL ARBITRATION

ALBAY, KEENZY
 COMPETENCE OF ARBITRAL
TRIBUNAL TO RULE ON ITS
JURISDICTION
ARBITRAL TRIBUNAL
-Sole arbitrator or a panel of
arbitrators. (Article 2 of
UNCITRAL Model Law)
The arbitral tribunal may rule on its
own jurisdiction, including any
objections with respect to the
existence or validity of the
arbitration agreement.
 PRINCIPLE OF SEPARABILITY
OR SEVERABILITY

An arbitration clause which

forms part of a contract shall
be treated as an agreement
independent of the other terms
of the contract.
-A plea that the arbitral tribunal DOES
NOT HAVE JURISDICTION shall be raised
not later than the submission of the
statement of defense.
-A plea that the arbitral tribunal is
EXCEEDING THE SCOPE OF ITS AUTHORITY
shall be raised as soon as the matter
alleged to be beyond the scope of its
authority is raised during the arbitral
proceedings.
The arbitral tribunal may admit a later
plea
IF IT CONSIDERS THE DELAY JUSTIFIED.
The arbitral tribunal may rule on the
allegations that it does not have jurisdiction
or it exceeds the scope of its authority either
as a preliminary question or in an award on
the merits

If the arbitral tribunal rules as a preliminary

question that it has jurisdiction, any party may
request, within thirty days after having received
notice of that ruling, the court to decide the
matter, which decision shall be subject to NO
APPEAL
While pending, the arbitral tribunal
may continue the arbitral proceedings and
make an award
POWER OF ARITRAL TRIBUNAL TO
ORDER INTERIM MEASURES
Unless otherwise agreed by the parties,
the arbitral tribunal may, at the request
of a party, order any party to take such
interim measure of protection
As the arbitral tribunal may consider
necessary in respect to the subject
matter of the dispute.
The arbitral tribunal may require any
party to provide appropriate security in
connection with such measure.
 CHAPTER V:
CONDUCT OF
ARBITRAL
PROCEEDINGS
DEL CASTILLO, LARA ANNE C.
ARTICLE 18 EQUAL TREATMENT OF
PARTIES

The parties shall be treated with

equality and each party shall be
given a full opportunity of presenting
his case.
 ARTICLE 19 DETERMINATION OF
RULES OF PROCEDURE

> Parties are free to agree on the procedure

to be followed by the arbitral tribunal in
conducting proceedings.
> Failing such agreement, the arbitral tribunal
may conduct the arbitration in such manner
as it considers appropriate.
ARTICLE 20 PLACE OF ARBITRATION
> Parties are free to agree on the place of arbitration.
Failing such agreement, the place of arbitration shall
be determined by the arbitral tribunal having regard
to circumstances of the case

> The arbitral tribunal may meet at any place it

considers appropriate for consultation among its
members
ARTICLE 21 COMMENCEMENT OF
ARBITRAL PROCEEDINGS

The arbitral proceedings in respect of a particular

dispute commence on the date on which a request
for that dispute to be referred to arbitration is received
by the respondent
 ARTICLE 22 LANGUAGE
Parties are free to agree on the language/s to be used in
the arbitral proceedings. This agreement or determination
shall apply to any written statement by a party, any
hearing and any award, decision or other communication
by the arbitral tribunal

The arbitral tribunal may order that any documentary

evidence shall be accompanied by a translation into the
language/s agreed upon by the parties or determined by
the arbitral tribunal
ARTICLE 23 STATEMENT OF CLAIM
AND DEFENSE
Within the period of time agreed by the parties or
determined by the arbitral tribunal, the claimant shall
state his defense in respect of these particulars, unless
the parties have otherwise agreed as to the required
elements of such statements

Either party may amend or supplement his claim or

defense during the course of the arbitral proceedings,
unless considered inappropriate
 ARTICLE 24 HEARINGS AND
WRITTEN PROCEEDINGS

The arbitral tribunal shall decide whether to hold oral

hearings for the presentation of evidence or for oral
argument, or whether the proceedings shall be conducted
on the basis of documents and other materials
ARTICLE 25 DEFAULT OF A PARTY

If without showing sufficient cause:

A. the claimant fails to communicate his

statement of claim in accordance with Art 23
(1)
B. the respondent fails to communicate his
statement of defense in accordance with Art
23 (1)
C. any party fails to appear at a hearing or to
produce documentary evidence
ARTICLE 26 EXPERT APPOINTED BY
THE ARBITRAL TRIBUNAL
The tribunal may:

1. appoint one or more experts to report to it on

specific issues to be determined by the arbitral
tribunal
2. require a party to give the expert any relevant
information or to produce, or to provide access to,
any relevant documents, goods or other property
for his inspection

The expert shall, after delivery of his written or oral

report, participate in a hearing where the parties have
the opportunity to put questions to him and to the
present expert witnesses in order to testify on the points
 UNCITRAL Model Law on
International Commercial
Arbitration

CHAPTER VI. MAKING OF

AWARD AND
TERMINATION OF
PROCEEDINGS

MILLERA, ROME
 Article 28. Rules Applicable to
Substance of Dispute
1) The arbitral tribunal shall decide the dispute in
accordance with such rules of law as are chosen by
the parties as applicable to the substance of the
dispute.
2) Failing any designation by the parties, the arbitral
tribunal shall apply the law determined by the conflict
of laws rules which it considers applicable.
3) The arbitral tribunal shall decide ex aequo et bono
or as amiable compositeur only if the parties have
expressly authorized it to do so.
4) In all cases, the arbitral tribunal shall decide in
accordance with the terms of the contract and shall
take into account the usages of the trade applicable
to the transaction.
 Article 29. Decision Making by
Panel of Arbitrators

In arbitral proceedings with more than one

arbitrator, any decision of the tribunal shall be
made, unless otherwise agreed by the parties,
by a majority of all its members. However,
questions of procedure may be decided by a
presiding arbitrator, if so authorized by the
parties or all members of the arbitral tribunal.
 Article 30. Settlement

1) If, during arbitralproceedings, the parties

settle the dispute, the arbitral tribunal shall
terminate the proceedings and, if
requested by the parties and not
objected to by the arbitral tribunal, record
the settlement in the form of an arbitral
award on agreed terms.
2) An award on agreed terms shall be made
in accordance with the provisions of
Article 31 and shall state that it is an award
on the merits of the case.
 Article 31. Form and Contents of
Award
1) The award shall be made in writing and shall be
signed by the arbitrator or arbitrators.
2) The award shall state the reasons upon which it
is based, unless the parties have agreed that no
reasons are to be given or the award is an
award on agreed terms under Art. 30.
3) The award shall state its date and the place of
arbitration as determined in accordance with
Art. 20 (1)
4) After the award is made, a copy signed by the
arbitrators in accordance with paragraph (1) of
this Article shall be delivered to each party
 Article 32. Termination of
Proceedings

1) The arbitral proceedings are terminated by

the final award or by an order of the arbitral
tribunal in accordance with paragraph (2) of
this article.
2) The arbitral tribunal shall issue an order for the
termination of the arbitral proceedings when:
 Article 32. Termination of
Proceedings
a)The claimant withdraws his claim
b)The parties agree on the termination
of the proceedings
c)The arbitral tribunal finds that the
continuation of the proceedings has
for any other reason become
unnecessary or impossible
 Article 32. Termination of
Proceedings

c) The mandate of the arbitral tribunal

terminates with the termination of the
arbitral proceedings, subject to the
provisions of articles 33 and 34 (4).
 Article 33. Correction and Interpretation of
Award; Additional Award

1) Within thirty days of receipt of the award, unless another

period of time has been agreed upon by the parties:
a) A party, with notice to the other party, may request the
arbitral tribunal to correct in the award any errors in
computation, any clerical or typographical errors or any
errors of similar nature;
b) If so agreed by the parties, a party, with notice to the
other party, may request the arbitral tribunal to give an
interpretation of a specific point or part of the award
If the arbitral tribunal considers the request to be justified, it
shall make the correction or give the interpretation within
thirty days of receipt of the request. The interpretation shall
form part of the award.
 Article 33. Correction and Interpretation of
Award; Additional Award

2) The arbitral tribunal may correct any error of the type

referred to in paragraph (1)(a) of this article on its own
initiative within thirty days of the date of the award.

3) Unless otherwise agreed by the parties, a party, with

notice to the other party, may request, within thirty days
of receipt of the award, the arbitral tribunal to make an
additional award as to claims presented in the arbitral
proceedings but omitted from the award. If the arbitral
tribunal considers the request to be justified, it shall make
the additional award within sixty days.
 Article 33. Correction and Interpretation of
Award; Additional Award

4) The arbitral tribunal may extend, if

necessary, the period of time within which it
shall make a correction, interpretation or an
additional award under paragraph (1) or
(3) of this article.

5) The provisions of article 31 shall apply to a

correction or interpretation of the award or
to an additional award.
 CHAPTER VII:
RECOURSE AGAINST
AWARD
SANTIAGO, EDREM
 Article 34

Application for Setting Aside as Exclusive

Recourse Against Arbitral Award
1. How Recourse is made?
2. When to Set Aside?
3. When application for setting aside is not
made?
4. When can it be suspended?
 HOW RECOURSE IS MADE?

Recourse to a court against an arbitral award

may be made only by an application for
setting aside in accordance with paragraphs 2
and 3 of this Article
 WHEN TO SET ASIDE?

An arbitral award may be set aside by the court

specified in article 6 only if:

a) The party making the application furnishes proof that:

i. A party to the arbitration agreement referred to in

article 7 was under some incapacity; or the said
agreement is not valid under the law to which the
parties have subjected it or, failing any indication
thereon, under the law of this State;
ii. The party against whom the award is invoked
was not given proper notice of the
appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to
present his case; or
iii. The award deals with a dispute not
contemplated by or not falling within the terms
of the submission to arbitration or it contains
decisions on matters beyond the scope of the
submission to arbitration,
provided.....
That if the decision on matters submitted to
arbitration can be separated from those not so
submitted, only that part of the award which
contains decisions on matters submitted to
arbitration may be set aside; or
iv. The composition of the arbitral tribunal or the
arbitral procedure was not in accordance with
the agreement of the parties, unless such
agreement was in conflict with a provision of
this Law from which the parties cannot
derogate, or, failing such agreement, was not
in accordance with this Law; or
b. If the court finds that
i. The subject matter of the dispute is not
capable of settlement by arbitration under the
law of this State; or
ii. The recognition or enforcement of the award
would be contra
 WHEN NOT MADE?

May not be made after three months have

elapsed from the date on which the party
making that application had received the
award or, if a request has been made under
article 33, from the date on which that request
had been disposed of by the arbitral tribunal
 WHEN SUSPENDED?

The court may ask to set aside an award,

where appropriate and so requested by a
party, suspend the setting aside proceedings
for a period of time determined by it in order to
give the arbitral tribunal an opportunity to
resume the arbitral proceedings or to take such
other action as in the arbitral tribunals opinion
will eliminate the grounds for setting aside.
 CHAPTER VIII:
RECOGNITION AND
ENFORCEMENT OF AWARDS

RAMOS, KARISSA MARIE, R.

 RECOGNITION AND
ENFORCEMENT

Aimed towards uniform treatment of all awards

irrespective of country of origin
Dispute may have little or no connection with
the State where arbitration takes place
Any arbitral award, irrespective of the country
in which it was made, shall be recognized as
binding and enforceable
 GROUNDS FOR REFUSAL OF
RECOGNITION
Defect in the arbitration agreement
Violation of due process
Lack or excess of jurisdiction on the part of the
arbitral tribunal
Violation of arbitration agreement
Not capable of settlement under the laws of the
Philippines
In conflict with public policy of the Philippines